The fast and cost-efficient home delivery of goods ordered online is logistically challenging. Many companies are looking for new ways to cross the last-mile to their customers. One technology-enabled opportunity that recently has received much attention is the use of a drone to support deliveries. An innovative last-mile delivery concept in which a truck collaborates with a drone to make deliveries gives rise to a new variant of the traveling salesman problem (TSP) that we call the TSP with drone. In this paper, we model this problem as an IP and develop several fast route first-cluster second heuristics based on local search and dynamic programming. We prove worst-case approximation ratios for the heuristics and test their performance by comparing the solutions to the optimal solutions for small instances. In addition, we apply our heuristics to several artificial instances with different characteristics and sizes. Our experiments show that substantial savings are possible with this concept in comparison to truck-only delivery.

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Unmanned aerial vehicles (UAVs), or aerial drones, are an emerging technology with significant market potential. UAVs may lead to substantial cost savings in, for instance, monitoring of difficult‐to‐access infrastructure, spraying fields and performing surveillance in precision agriculture, as well as in deliveries of packages. In some applications, like disaster management, transport of medical supplies, or environmental monitoring, aerial drones may even help save lives. In this article, we provide a literature survey on optimization approaches to civil applications of UAVs. Our goal is to provide a fast point of entry into the topic for interested researchers and operations planning specialists. We describe the most promising aerial drone applications and outline characteristics of aerial drones relevant to operations planning. In this review of more than 200 articles, we provide insights into widespread and emerging modeling approaches. We conclude by suggesting promising directions for future research.

This review addresses the specific supply chain management issues of Internet fulfillment in a multi-channel environment. It provides a systematic overview of managerial planning tasks and reviews corresponding quantitative models. In this way, we aim to enhance the understanding of multi-channel e-fulfillment and to identify gaps between relevant managerial issues and academic literature, thereby indicating directions for future research.One of the recurrent patterns in today's e-commerce operations is the combination of 'bricksand-clicks', the integration of e-fulfillment into a portfolio of multiple alternative distribution channels. From a supply chain management perspective, multi-channel distribution provides opportunities for serving different customer segments, creating synergies, and exploiting economies of scale. However, in order to successfully exploit these opportunities companies need to master novel challenges. In particular, the design of a multi-channel distribution system requires a constant trade-off between process integration and separation across multiple channels. In addition, sales and operations decisions are ever more tightly intertwined as delivery and after-sales services are becoming key components of the product offering. E-Fulfillment and Multi-Channel Distribution -A Review AbstractThis review addresses the specific supply chain management issues of Internet fulfillment in a multi-channel environment. It provides a systematic overview of managerial planning tasks and reviews corresponding quantitative models. In this way, we aim to enhance the understanding of multi-channel e-fulfillment and to identify gaps between relevant managerial issues and academic literature, thereby indicating directions for future research.One of the recurrent patterns in today's e-commerce operations is the combination of 'bricks-and-clicks', the integration of e-fulfillment into a portfolio of multiple alternative distribution channels. From a supply chain management perspective, multi-channel distribution provides opportunities for serving different customer segments, creating synergies, and exploiting economies of scale. However, in order to successfully exploit these opportunities companies need to master novel challenges. In particular, the design of a multi-channel distribution system requires a constant trade-off between process integration and separation across multiple channels. In addition, sales and operations decisions are ever more tightly intertwined as delivery and after-sales services are becoming key components of the product offering.

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